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Cryptocurrency Market Correction

Definition

A cryptocurrency market correction is a notable price decline following a period of upward movement. This event typically involves a short-term reversal of at least 10% from a recent peak, serving to stabilize overheated markets and eliminate speculative excesses. Corrections are considered a normal and often healthy part of market cycles, preventing unsustainable asset bubbles. They can affect individual digital assets or the broader market, offering opportunities for value investors.